Microsoft will pay 3.79 billion Euros for Nokia's business, plus another 1.65 billion Euros for its portfolio of patents. (The 5.44-billion Euro total is considerably less than Microsoft*paid for Skype in 2011.)

Oh joy. Picking the Verge as your news source over an actual news site. Microsoft bought the hardware division only and has licensed the patents for a 10 year term. When they bought Skype, it was the whole business, patents and all.

Oh joy. Picking the Verge as your news source over an actual news site. Microsoft bought the hardware division only and has licensed the patents for a 10 year term. When they bought Skype, it was the whole business, patents and all.

I am pretty sure a regular patent is only for 20 years and a design patent is 14, so a 10 year license is almost as good as buying them for MS only they won't get license fees for previous licenses issued by Nokia to other companies. Not sure what the breakdown or revenue stream for NOK is, but I am guessing they get to keep a nice revenue stream..

Oh joy. Picking the Verge as your news source over an actual news site. Microsoft bought the hardware division only and has licensed the patents for a 10 year term. When they bought Skype, it was the whole business, patents and all.

The Verge is correct, they paid 1.65 billion euros for 8500 design patents and have licensed 30,000 utility patents.

1) We already know BB's roadmap for the year, and it does not include really cheap BB handsets.
2) BB10 handsets have only shipped for 2 quarters, mostly filling the channel. It remains to be seen if shipment numbers will be up or down for the 3rd quarter. If down, it will be seen as a disaster.

BB does need to cut prices, but issues such as needing HD screens and 2 GB RAM + needing to manufacture in Canada will always keep their handsets more expensive than competitors with WVGA screens and 512 MB RAM made in Vietnam.

So while BB's ASP's are higher, it may be what dooms BB, due to the company's inability to make really cheap BB10 handsets.

Under the terms of the agreement, Microsoft will acquire substantially all of Nokia’s Devices and Services business, including the Mobile Phones and Smart Devices business units as well as an industry-leading design team, operations including all Nokia Devices & Services-related production facilities, Devices & Services-related sales and marketing activities, and related support functions. At closing, approximately 32,000 people are expected to transfer to Microsoft, including 4,700 people in Finland and 18,300 employees directly involved in manufacturing, assembly and packaging of products worldwide. The operations that are planned to be transferred to Microsoft generated an estimated EUR 14.9 billion, or almost 50 percent of Nokia’s net sales for the full year 2012.

Microsoft is acquiring Nokia’s Smart Devices business unit, including the Lumia brand and products. Lumia handsets have won numerous awards and have grown in sales in each of the last three quarters, with sales reaching 7.4 million units in the second quarter of 2013.

As part of the transaction, Nokia is assigning to Microsoft its long-term patent licensing agreement with Qualcomm, as well as other licensing agreements.

Microsoft is also acquiring Nokia’s Mobile Phones business unit, which serves hundreds of millions of customers worldwide, and had sales of 53.7 million units in the second quarter of 2013. Microsoft will acquire the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand. This element provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia’s mobile phones to serve as an on-ramp to Windows Phone.

Nokia will retain its patent portfolio and will grant Microsoft a 10-year license to its patents at the time of the closing. Microsoft will grant Nokia reciprocal rights to use Microsoft patents in its HERE services. In addition, Nokia will grant Microsoft an option to extend this mutual patent agreement in perpetuity.

In addition, Microsoft will become a strategic licensee of the HERE platform, and will separately pay Nokia for a four-year license.

Microsoft will also immediately make available to Nokia EUR 1.5 billion of financing in the form of three EUR 500 million tranches of convertible notes that Microsoft would fund from overseas resources. If Nokia decides to draw down on this financing option, Nokia would pay back these notes to Microsoft from the proceeds of the deal upon closing. The financing is not conditional on the transaction closing.

Microsoft also announced that it has selected Finland as the home for a new data center that will serve Microsoft consumers in Europe. The company said it would invest more than a quarter-billion dollars in capital and operation of the new data center over the next few years, with the potential for further expansion over time.

What seems to causing the confusion is that the intital Press Release is wrong - they made it clear in the conference they are acquiring patents as well as licensing - MS's Presentation makes that clear as well:

"Microsoft is acquiring over 8,500 patents" *but* that is out of the $3.6 (or whatever it was) billion they are paying for the hardware division - the $1.6 billion is for the licensing of the other patents. So the value of the Hardware division was lower than we first thought...

What's confusing to me is the number of articles that claim BlackBerry will be hit the hardest, but shares are up almost 5%, so where's the fear sentiment that these fools are proclaiming? And why isn't everyone selling BlackBerry and buying Nokia?

I'm beginning to see why some of you hate shorts and websites that write for page hits.

What's confusing to me is the number of articles that claim BlackBerry will be hit the hardest, but shares are up almost 5%, so where's the fear sentiment that these fools are proclaiming? And why isn't everyone selling BlackBerry and buying Nokia?

I'm beginning to see why some of you hate shorts and websites that write for page hits.

Posted via CB10

Because people are gambling that another player/asset stripper will move into gobble up BBRY's patents (the valuable bit) - that is what will cause the surge - it has nothing to do with the their current market position.

Do you have a link for the updated info? I'm wondering if these aquired patents are for their mobile phone side and Asha, not the smartphone side. Both of which are a non growth business

See here, slide 23, it's not my area but the chat on twitter from patent people suggests it's for all the design aspects of all handsets (lumia and Asha) - would be a bit odd to buy the handset division and patents for dumb phones but not smart?

However it's odd they picked up the nokia brand for use on feature phones for 10 years and not Smartphones?

Wow...BlackBerry must of thrown the hammer lol. it was a really nice video of a Dev showing BBM on an Android (HTC). Works really well and does come with ability to send voice notes and NFC bump for contacts.

Wow...BlackBerry must of thrown the hammer lol. it was a really nice video of a Dev showing BBM on an Android (HTC). Works really well and does come with ability to send voice notes and NFC bump for contacts.